Apple adopts revenue-sharing rent model for new Bengaluru store at Phoenix Mall

Apple is deepening its India presence by opening a third retail store in Bengaluru with a unique lease combining fixed rent and revenue share, reflecting confidence in the market's growth. This move coincides with Foxconn's manufacturing facility nearing completion, boosting local real estate and signaling India's rising role in Apple's global strategy.

Sources:
Indiatoday+1
Updated 48m ago
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Sources: Indiatoday
Apple Inc. is set to open its third retail store in Bengaluru, leasing nearly 8,000 square feet at the upscale Phoenix Mall of Asia in North Bengaluru.

The lease agreement spans 10 years, with a unique revenue-sharing rent model where Apple will pay 2% of its store revenue for the first three years, increasing to 2.5% in subsequent years. Additionally, the rent and security deposit will escalate by 15% every three years.

This move aligns with Apple's expanding footprint in India, following the launch of its first two stores in Mumbai and Delhi in 2023. The Bengaluru store will be similar in size to the Delhi outlet but smaller than the flagship Mumbai store, which covers 20,800 square feet.

The choice of Bengaluru, particularly the northern corridor near Devanahalli, is strategic. The area is witnessing a surge in real estate activity, partly due to the nearing completion of Foxconn's iPhone manufacturing facility. According to Ashish Sharma, City Head – Bengaluru at ANAROCK Group, property rates have surged by 30-35% since Foxconn's entry.

India's growing importance to Apple is evident not only as a sales market but also as a key manufacturing hub, underscoring the company's long-term commitment to the region.

"There has been significant land appreciation in Devanahalli. Since Foxconn’s entry, property rates have surged by at least 30-35%," Sharma said.

The Phoenix Mall store will occupy a prime location on the mall's first floor, marking a significant step in Apple's retail expansion in India.

This revenue-sharing rent model reflects a flexible approach to retail leasing, potentially setting a precedent for future Apple stores in India and beyond.
Sources: Indiatoday
Apple has leased nearly 8,000 sq ft at Bengaluru's Phoenix Mall for its third Indian retail store, adopting a revenue-sharing rent model. The 10-year lease includes 2% revenue rent initially, rising to 2.5%, reflecting Apple's growing focus on India as a sales and manufacturing hub.
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The Headline

Apple's new Bengaluru store adopts revenue-sharing rent

Key Facts
  • Apple India has leased 7997.8 sq ft of retail space in North Bengaluru's Phoenix Mall for an annual rent of nearly ₹2 crore.1
  • The lease tenure is 10 years with a 15% escalation in both rent and security deposit every three years.1
  • The new Bengaluru store will be Apple's third retail outlet in India, occupying a prime 8,000 sq ft space similar in scale to the Delhi store but smaller than the flagship Mumbai store which spans 20,800 sq ft.Indiatoday
  • Apple will pay 2% of store revenue as rent for the first three years, increasing to 2.5% thereafter, indicating a revenue-sharing rent model alongside fixed rent.Indiatoday
Key Stats at a Glance
Retail space leased by Apple India in Bengaluru
7997.8 sq ft
1
Annual rent for Apple India's Bengaluru store
₹2 crore
1
Lease tenure for Apple India's Bengaluru store
10 years
1
Escalation in rent and security deposit every three years
15%
1
Number of Apple retail stores in India as of 2023
3 stores
Indiatoday
Size of Apple's flagship Mumbai store
20,800 sq ft
Indiatoday
Revenue-sharing rent percentage for first three years
2%
Indiatoday
Revenue-sharing rent percentage after first three years
2.5%
Indiatoday
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Other Updates

India's growing importance in Apple's global strategy

Key Facts
  • India has become central to Apple’s global plans, not only as a market for sales but increasingly as a key manufacturing hub.Indiatoday
Background Context

Apple's India retail and Foxconn manufacturing boost Bengaluru real estate

There has been significant land appreciation in Devanahalli. Since Foxconn’s entry, property rates have surged by at least 30–35%.
Ashish Sharma
City Head – Bengaluru at ANAROCK Group
1
Key Facts
  • Apple opened its first two retail stores in India in 2023, located in Mumbai and Delhi.Indiatoday
  • Foxconn’s iPhone manufacturing facility in Devanahalli, Bengaluru is nearing completion, boosting real estate activity in the city’s northern corridor.1
  • Property rates in Devanahalli have surged by 30-35% since Foxconn’s entry, reflecting increased industrial activity and land appreciation.1
Key Stats at a Glance
Increase in property rates in Devanahalli since Foxconn's entry
30-35%
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